Lent money to a friend or relative and they are not returning it? How to recover it in India — proof, legal notice, 3-year limit (Limitation Act Art. 19), cheque bounce s.138, summary suit (Order XXXVII CPC), when it is cheating (BNS s.318) (2026)
Plain guide for anyone who gave a hand loan (udhar) to a friend, relative, colleague or neighbour — by cash, UPI or bank transfer — and cannot get it back: what proof helps, how to ask in writing, the three-year time limit, how a cheque changes things, the civil recovery routes (money suit, summary suit, Lok Adalat) and why police usually treat non-repayment as a civil matter. Educational only — not legal advice. Adhiwakta does not send notices, file cases or contact the borrower.
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First, check the time limit — usually 3 years
Under the Limitation Act, 1963 a suit for money lent must normally be filed within three years from the date the loan was given (Schedule Art. 19; Art. 21 for a loan payable on demand). If you hold a promissory note payable on demand, it is three years from the date of the note (Art. 35). The clock restarts if, before it runs out, the borrower signs a written acknowledgment of the debt (s.18 — a signed letter, message or entry admitting the amount can count) or makes a part-payment shown in writing (s.19). Do not wait for years hoping for repayment — note the dates today.
Collect your proof
Bank or UPI statements showing the transfer (with UTR numbers), any promissory note, loan agreement or receipt, cheques given by the borrower, WhatsApp chats, SMS, emails or call recordings where the borrower admits the loan or promises to repay, and names of people who were present. Cash loans are hardest to prove — any later written admission becomes very important. Keep screenshots plus the original phone or chat export; courts may need a certificate for electronic records under BSA s.63 (old Evidence Act s.65B). Note that income-tax law restricts taking loans of ₹20,000 or more in cash — use banking channels for future loans.
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Write in Hindi or English · general guidance, not legal advice
Ask in writing — demand letter or legal notice
Send a clear, polite written demand by Speed Post (keep the tracking) and WhatsApp / email: amount, date(s) given, mode of payment, any earlier promises, and a reasonable date to repay. Many people send this as a legal notice through an advocate. A notice is not compulsory for a money suit, but it often brings repayment or a written reply — and a reply that admits the debt can help with proof and limitation. Do not threaten, abuse, shame the borrower publicly or visit with others to pressure them; that can create criminal trouble for you.
If the borrower gave you a cheque
If a cheque given towards repayment bounces, the Negotiable Instruments Act, 1881 s.138 route applies with strict time limits: present the cheque within its validity, send a written demand notice within 30 days of the bank’s return memo, give 15 days to pay, and file the complaint before the Magistrate within one month after those 15 days. This is often the strongest route because the law presumes the cheque was for a debt (s.139), though the borrower can rebut it. Keep the original cheque and return memo safely. See our cheque bounce guide for the steps.
Civil recovery — money suit or summary suit
The main remedy is a civil suit for recovery of money with interest (CPC s.34) in the civil court that has jurisdiction where the borrower lives or the loan was given; the court and court fee depend on the amount and your State’s court-fee law. If the claim is based on a written contract, promissory note or a fixed debt, a summary suit under Order XXXVII CPC is possible: the defendant cannot defend unless the court grants ‘leave to defend’, which can make it faster. After a decree, recovery is through execution (Order XXI) — attachment of bank accounts, salary or property.
Lok Adalat and mediation — cheaper and quicker
You can apply to the District Legal Services Authority for a pre-litigation Lok Adalat or mediation. The other side is invited; if both agree, the settlement becomes an award that is final and enforceable like a decree, with no appeal. Many friendly-loan disputes end in an instalment plan this way. If they do not come, you can still file the suit within the time limit.
Police complaint — only when it is really cheating
Not repaying a loan is usually a civil dispute, not a crime. A police complaint for cheating (BNS s.318, old IPC 420) fits only where the borrower deceived you from the very beginning — for example, false identity, fake documents, or taking money from many people with no intention to repay. The Supreme Court has repeatedly said that a simple breach of a promise to repay does not by itself make a criminal case, and police often decline such complaints. Filing a false or exaggerated criminal case to force repayment can backfire.
State money-lending laws and interest
If you lend money as a business (regularly, to many people, for interest), most States require a money-lender’s licence and cap interest — for example the Maharashtra Money-Lending (Regulation) Act, 2014 or the Karnataka Money Lenders Act, 1961 — and an unlicensed lender can face difficulty in recovering through courts. A one-time friendly loan to a known person is generally not ‘money-lending business’. Interest is recoverable if agreed; otherwise the court decides interest under CPC s.34. Rules differ by State, so check your State’s law.
How Adhiwakta can help
We do not send notices, file suits or complaints, or contact the borrower or police. Adhiwakta is a facilitation platform, not a law firm. We do not file cases, appear before any authority, or promise any result. Use Ask Adhiwakta to describe your situation for general guidance from an independent advocate, or start with the AI helper to organise your facts and papers. Educational only — not formal legal advice.
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Frequently asked questions
- What is the time limit to recover money lent to a friend?
- Generally three years from the date the loan was given (Limitation Act, 1963 Art. 19). A written, signed acknowledgment of the debt or a part-payment before the three years end restarts the period (ss.18 and 19).
- I gave money in cash with no paper. Can I still recover it?
- It is harder but possible if you can show the loan by other evidence — witnesses, and especially later messages or calls where the borrower admits the amount or promises to repay. Save such chats carefully and do not delete them.
- Is a WhatsApp message admitting the loan valid proof?
- Electronic messages are admissible evidence; courts may ask for a certificate under the Bharatiya Sakshya Adhiniyam s.63 (old Evidence Act s.65B). A signed written acknowledgment can also extend the limitation period.
- Can I file a police complaint if someone does not return my money?
- Usually not — non-repayment is a civil dispute. A cheating complaint (BNS s.318, old IPC 420) fits only where there was deception from the start, such as a false identity or fake documents.
- The borrower gave me a cheque that bounced. What now?
- Send a written demand notice within 30 days of the bank’s return memo, give 15 days to pay, and file a complaint under NI Act s.138 within one month after that if unpaid. Keep the original cheque and memo.
- What is a summary suit?
- A faster civil suit under Order XXXVII CPC for claims based on a written contract, promissory note or fixed debt. The defendant must get the court’s permission (leave) to defend; without it, the court can pass a decree.
- Is a legal notice compulsory before filing a money recovery suit?
- Not for a private money suit, but a written demand or legal notice often leads to repayment or an admission, and shows you tried to settle. Notices are compulsory in some cases, like cheque bounce (s.138) or suits against the Government (CPC s.80).
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